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1. In bonds, the act of an issuer repurchasing a bond at or before maturity. Redemption is made at the face value of the bond unless it occurs before maturity, in which case the bond is bought back at a premium to compensate for lost interest. The issuer has the right to redeem the bond at any time, although the earlier the redemption take place, the higher the premium usually is. This provides an incentive for companies to do this as rarely as possible.

2. The act of the issuing company repurchasing stocks or mutual funds. In the case of mutual funds, the repurchase is made at net asset value per share. Stocks may be redeemed in cash or by proration. See also: Proratable factor.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


(1) In mortgages, to cure a default by paying all past-due sums and penalties after receiving notice of default, but before acceleration. (2) To exercise the post-foreclosure right of redemption, if allowed. (3) Under federal law, the IRS has 120 days after foreclosure to purchase property on which it had a lien—to redeem the property. (It rarely does this,and would only do so if it believed it could sell the property at a profit large enough to justify the time and trouble.)

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
If the acquisition is a straight asset reorganization (A, C or acquisitive D reorganization), the redeeming corporation is the transferee or acquiring corporation.
If the acquisition is a triangular asset reorganization (forward triangular merger, reverse triangular merger or triangular C), the redeeming corporation is the controlling corporation.
Therefore, the entire proceeds from the sale of X stock to Y was treated as dividend income to the redeeming trust.
Also attributed to the redeeming trusts were shares in the corporation owned by a trusts of which Mr.
The 2018 Airline Loyalty Program Satisfaction Study measures member satisfaction with airline rewards and loyalty programs based on four factors (in order of importance): earning and redeeming rewards; program benefits; account management; and member communication.
With the help of trained service personnel, members can perform a range of on-the-spot functions such as redeeming their Qmiles for award tickets, upgrades and excess baggage; checking account details for mileage balance, Qpoints earned, claiming missing miles, requesting statements and card replacements; and nominating family members as well as enrolling for the Privilege Club programme.
Diners Club Rewards members will receive a 20 percent bonus, between February 1 and March 30, when redeeming points through the Tailored Travel program.